The Food Marketing System

The U.S. food marketing system has entered the 1990's considerably changed in size, competitiveness, and performance from that of the early 1980's. The food marketing system's 380,000 firms that process, wholesale, and retail the Nation's food supply have become considerably more concentrated and deeper in debt. They are introducing more new and diverse products to satisfy consumer demand. Also, food firms are more international in character, with foreign food firms owning stock in American food companies and American food firms owning stock in foreign food companies. The system has been performing spectacularly as the 1990's unfold. Profits and productivity are up. Common stock prices of food firms rose more than those of other firms. And, food firms are leading other firms in automation. Yet, the food marketing system's relative economic importance to the rest of the economy has been declining as consumers spend a declining share of their income on food.